Myths, safeguards, and what every homeowner should know. If you’re considering a reverse mortgage, it’s important to talk to a reverse mortgage specialist.

You’ve probably heard it before:

👉 “Reverse mortgages are risky.”
👉 “You’ll lose your house.”
👉 “It’s too good to be true.”

These are some of the most persistent myths about reverse mortgages — and while it’s smart to be cautious about any financial product, the truth is that modern HECMs are one of the most regulated, protected loan types in the country.

Let’s separate fear from fact.

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✅ Reverse Mortgages Are FHA-Insured and Federally Regulated

The Home Equity Conversion Mortgage (HECM) program is backed by the Federal Housing Administration (FHA) and governed by strict consumer protection guidelines.

Built-in safeguards include:

• Mandatory HUD-approved counseling
• Strict loan-to-value limits
• “Non-recourse” loan structure
• Ongoing financial assessments to ensure borrowers can maintain taxes, insurance, and upkeep

📘 In short: Reverse mortgages today aren’t what they were in the 1990s. They’re safer, smarter, and more transparent than ever before.

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🧱 5 Built-In Protections That Make HECMs Safe

1. You Keep Ownership

• You always retain the title to your home
• The lender never “takes” the house — even after you pass
• Your heirs still inherit the property, just like with any other mortgage

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2. Non-Recourse Guarantee

• You (or your heirs) can never owe more than the home is worth
• If the home sells for less than the loan balance, FHA insurance covers the difference — not your estate

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3. Mandatory HUD Counseling

• Before applying, you must complete a counseling session
• Explains the pros, cons, responsibilities, and alternatives
• Ensures you’re making an informed decision

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4. Flexible Payment Structure

• You’re not locked into a payment plan
• You choose: monthly payouts, lump sum, line of credit — or none
• Line of credit grows over time, giving you more access later

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5. Spousal Protections

• If one spouse is under 62, they can still be protected as a non-borrowing spouse
• The surviving spouse can stay in the home even after the borrower passes, as long as loan terms are met

✅ These rules were added in 2015 to prevent displacement of spouses and are federally enforced.

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🛑 When Is a Reverse Mortgage Not a Good Fit?

Like any tool, HECMs aren’t right for everyone. They may not be ideal if:

• You plan to move soon
• You struggle to maintain property taxes or insurance
• You want to preserve all your home equity for inheritance
• You don’t fully understand how the loan works

That’s why counseling, education, and transparency matter — and why we take the time to explain everything.

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🏢 Why PRMI?

We help homeowners:

• Make fully informed decisions with zero pressure
• Understand every safeguard, repayment rule, and family impact
• Coordinate with adult children and financial advisors
• Close confidently — knowing exactly what to expect

Our goal isn’t just to offer reverse mortgages — it’s to make sure it’s truly right for you.

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👇 Still Wondering if a Reverse Mortgage Is a Safe Option for You or Your Family?

Let’s talk. We’ll walk you through the facts, the protections, and the options — and help you make a choice you feel great about.